STRUCTURED SETTLEMENT VALUATION

Once a structured settlement is proposed, it is prudent to verify the present value of the
proposed settlement with an independent party. Insurance companies tend to overstate
the present value of the structured settlement they are proposing by using very low
assumed rates of return on invested funds. Consequently, the lower the assumed rate of
return (or discount rate) the greater the present value of the proposed structured
settlement. However, by making a more realistic assumption concerning the potential rate
of return, the present value of the structured settlement as calculated by our office may be
substantially less than the figure given to you. In any event, confirming the present value
of a proposed structured settlement enhances your bargaining position and protects you
from agreeing to a proposal that short changes your client, which may eventually lead to
problems down the road. Our valuation of structured settlement proposals include not only
discounts for interest, but also for mortality considerations when appropriate. Our report
clearly states our opinion as to the present value of the proposed settlement as well as the
assumptions and statistical data used in arriving at our conclusion. Multiple variations of
similar proposals are often included in our analysis at little or no extra charge. Simply give
our office the proposed structured settlement and we will provide a reasonable estimate
of its present value.